Arrow Electronics Inc. said Eric Schuck will take over as president of its global components business effective January 1, 2014. Schuck will replace Peter Kong who is scheduled to retire from the company on March 31, next year, according to a statement released by the company.
Schuck has more than 20 years’ experience in the electronics industry and served previously as head of Arrow’s components division in Europe, the Middle East and Africa. Arrow said Schuck has held increasingly senior positions at the company over the years, including marketing and asset management roles in North America and Europe. Schuck was appointed president of Arrow’s EMEA unit in October 2011.
“Eric’s demonstrated track record of leadership and success makes him the ideal executive to succeed Peter in leading our Global Components organization and accelerating the growth of our businesses,” said Michael Long, president & CEO of Arrow in the statement. “As an important element of our succession-planning process, Peter will be working closely with Eric on an orderly transition through the end of 2013.”
Arrow’s electronics components business is the company’s main operating division. It reported revenue of $3.5 billion in the September quarter and accounted for almost 69 percent of the company’s adjusted sales of $5.1 billion in the third quarter of the year. In the first nine months of this year, the components division had approximately $10.1 billion in sales, or slightly two-thirds of the $15.2 billion sales Arrow reported for the period.
In 2012, Arrow’s components group reported sales of $13.4 billion, down 10 percent from $14.9 billion in the previous year. The enterprise computing solutions (ECS) division accounted for the remainder of the company’s $20.4 billion revenue in 2012. The ECS group had sales of $7 billion for the year, up 8 percent from $6.5 billion in 2011. For 2013, analysts on average expect Arrow to report revenue of $21 billion with sales seen rising to $22.5 billion in 2014. The components group is expected to remain at about two-thirds of company-wide revenue.
The appointment of Schuck as head of the components division positions him as a likely replacement for Long, who is also chairman of the company’s board of directors and has been in the CEO position for approximately four years. Long was previously president and COO of the company. The other senior executives who may also be in contention to replace Long include Andrew Bryant who heads Arrow’s enterprise computing solutions division, CFO Paul Reilly and Catherine Morris, senior VP and chief strategy officer.
At 54 years old, however, it is unlikely that Long is contemplating retiring. Both Bryant (57) and Morris (54) are within the same age group as Long.